How I Skim A New Cryptocurrency Project

How I Skim A New Cryptocurrency Project

There are plenty of new cryptocurrencies about to launch ICOs. Despite Chinese government have banned ICOs, now they have moved somewhere else, Singapore for example. This trend still exists today. And it may be hard for someone to get through their whitepapers, technical details, timeline, future plans, and business models they are about to create once they roll out the end products. Reading 500 white papers and writing overviews of them in several months will only make the effort valueless since cryptocurrency world is moving fast.

I basically love to learn about new products. Although I might not know everything after I learn 1 or 2 main features of their plan, there are several things that you can try doing.

First of all, and this is the main important one: added value. I basically hate projects with Ethereum tokens as their final products. That’s a big no for me, since everyone can copy-paste the scripts, clone the business models, and the list goes on. But that is my own opinion. There may several interesting projects utilizing Ethereum tokens and add significant values over them. Decentralized token exchange, for example, is an interesting project. I am not really sure if there is such existing project. The point I need to make here is: either the projects use tokens or new blockchains, the added value should be there and be in the main spotlight of their information websites.

Second point, which is also important: cryptographers. I love projects which try to improve technical problems in existing products. Let’s say that a project which tries to solve the “quantum attack” is too good to be missed out. As you may already realize that there is no cryptocurrency without cryptography. Therefore, the team developing the project should have at least an expert in cryptography. The problem with cryptography is that it requires an extensive study to master it: a combination of math and algorithm is strongly required. The key point is: without any cryptographer employed in the team, they can only copy-paste the “crypto” part from somewhere else and do not add an extra value to protect your money.

Third, of course, their general idea of how the new product will be sold. The project should not finish once ICO is finished. In contrary, it is the beginning of an interesting journey for them. You can use common sense to calculate whether their idea is a good one or just a common idea which has been implemented somewhere else.

Reading the whitepaper(s), explanation(s), as well as reading the team structure, are important measurements before you participate in a fundraising (ICO). But in a glitch, you can quickly measure whether a project is worth your time by looking at the 3 points I mentioned.

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